Budgeting is Important Even Now
Once you graduate from high school and/or college, get a job, and move out of your parent's home, it is imperative to keep a budget to manage your finances. These article and videos will give you some ideas about what considerations should be included in your budgeting. Build good habits and start budgeting now! Learning how to manage your finances before money mistakes happen can help you avoid making mistakes. Recent high school and college graduates have a unique—possibly once-in-a-lifetime—opportunity to set long-range monetary goals and develop lifelong healthy financial habits.
Check out this video from Finance Education:
Check out this article from MarketWatch:
Step 1: Know your monthly income
Step 2: List fixed expenses
Step 3: List variable expenses
Step 4: Consider the model budget
Step 5: Budget for wants
Step 6: Trim your expenses
If your budget proves your expenses outweigh your income, look for ways to cut back. One of the easiest ways to trim your expenses is to evaluate how much money you’re spending on the things you want but don’t necessarily need. For example, a night out with friends costs an average of $81, which really adds up if you go out multiple nights a week. This doesn’t mean you can’t go out and have fun, but you may need to limit your spending to make your budget work.
Set Your Goals
Creating goals and rewards is a fantastic way to increase your chance of budgeting successfully. For example, set a goal to save a specific amount to pay off debts by spending less on unnecessary expenses like dining out or shopping. Put this money into a savings account to earn interest. When you meet your savings goal, reward yourself with a reasonable splurge on something fun.
Check out this video from Federal Student Aid: